The Second Circuit Court of Appeals has rejected a challenge to a confirmation of an arbitration award upholding the nonrenewal of a master franchise agreement for Subway restaurants.
Beginning in the 1990s, Subway International B.V. entered into a series of master franchise agreements with Subway Russia that allowed Subway Russia to operate Subway sandwich franchises in Russia. In 2020, Subway decided not to renew the master franchise agreement, claiming that it had the right to do so because of certain “defaults” by Subway Russia. Subway Russia disagreed and the parties arbitrated the matter.
An arbitrator ruled in favor of Subway. The parties cross-moved to confirm and vacate that award. The district court remanded the case for the arbitrator to decide one additional issue. After the arbitrator had ruled on that issue, the parties again cross-moved to confirm and vacate the award and the district court confirmed the award.
Subway Russia appealed and the Second Circuit affirmed. The court rejected Subway Russia’s arguments that: (1) Subway’s second petition to confirm was untimely; (2) the district court erred in changing its initial decision; and (3) the district court’s decisions were contradictory. The court explained that the district court appropriately remanded the case and thus exercised jurisdiction over the second petition for confirmation. The court held that the district court had authority to correct its first decision, which remanded the matter for a further ruling, and that its second decision did not conflict with its first decision.
Subway International B.V. v. Subway Russia Franchising Co., No. 24-1702 (2d Cir. May 12, 2025).
©2026 Carlton Fields, P.A. Carlton Fields practices law in California through Carlton Fields, LLP. Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our Contact Us form via the link below. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites.
Perspectives on reinsurance and arbitration law and practice.
Recent Posts
Editorial Contacts
Shareholder
Shareholder
Of Counsel
Shareholder
Shareholder
